Alaris Equity Partners Income Trust successfully redeemed its investment in FNC Title Services, realizing gross proceeds of US$58.3 million, marking a 75% return and an IRR of approximately 42%.

Information on the Target

Alaris Equity Partners Income Trust ("Alaris"), based in Calgary, Alberta, has recently completed the redemption of its interest in Falcon Master Holdings, LLC, known as FNC Title Services ("FNC"). This transaction, finalized on October 1, 2022, yielded gross proceeds to Alaris amounting to US$58.3 million (CA$77.0 million). The proceeds consist of US$48.6 million from the redemption of all preferred equity and US$9.7 million from the purchase of Alaris' investment in FNC's common equity.

In addition, the redemption included US$5.2 million designated for distributions and US$1.4 million held in escrow related to potential indemnification obligations. Alaris' initial investments were recorded at US$32.15 million for preferred equity and US$7.85 million for common equity.

Industry Overview in Canada

Canada's title services industry has shown robust growth, driven by increasing property transactions and a demand for reliable title insurance amidst fluctuating real estate markets. With a strong regulatory fr